Laserfiche WebLink
► <br />L. <br />Dahlstrom Development LLC. <br />August 22,20Q2 <br />Mr. Ronald J. Moorse <br />City Administrator <br />City of Orono, MN 55356 <br />Dear Mr. Moorse: <br />To address the two issues referred to in your letter of August 19, 2002, I have provided the <br />following information: a business history on the principal owners of Dahlstrom Development <br />LLC., the names and locations of previous developments, types of housing, number of units, <br />build-out time frames and the names of the financing institution. 1 have not disclosed the names <br />of the private investment groups or individuals that were participants in these transactions, but <br />will be happy to do so upon your request and the participants approval to release their names. <br />I have endeavored to provide you with information regarding Dahlstrom Development LLC., <br />organization and staff. Please understand that the core staff is in place, with the exception of two <br />individuals and that release of any private employee ruunes at this stage of the approval process <br />with the City would be inappropriate. Further, several investment groups are competing to <br />provide capital for this development but a final selection has not been made, therefore, <br />identifying these groups at this time would jeopardize an entire year of negotiations. We cannot <br />make this selection and finalize an agreement without, at the very least, approval from the City of <br />Orono of our PUD concept plan. We respectfully request that you approve our development <br />concept on August 26,2002. We can proceed with our selection of investors and can then <br />provide you with the investment group name as well as that of the attendant financial institution. <br />We have enclosed market study data for this project, which indicates a viable development as <br />proposed. Our investors concur with our aruilysis. Our experienced development team has <br />prepared a project pro-forma, but we must keep tlmt information confidential. I would be willing <br />to provide the City with that detailed information if the City is able to insure me that the pro­ <br />forma information would remain confidential and would not become public information. We <br />would be happy to release that information to the City upon receipt of a signed confidentiality <br />agreement. <br />The issues raised concerning housing affordability is complicated, but we have committed to <br />retain Donald Solie, President of US Bancorp -National Account Services, Division of US Bank, <br />the First Vice President of US Bank, as our consultant. After consultation with Mr. Solie, it <br />appears the loft units are the only component of this development that may qualify as affordable. <br />Affordability, as it applies to the two-story units, is complicated by the fact that I cannot simply <br />leave the upper story of a two-story unit unfinished as this would remove all bedroom graces. <br />Further, redesigning these units as a viable single-story will increase the cost and thus work <br />against any affordable goal. <br />8 <br />i